By Lori Ehde
Pipestone veterinarian Gordon Spronk pleaded guilty in U.S. District Court to making a false statement to a federally-insured bank, and in his plea agreement he has committed to providing $500,000 to local schools and government bodies.
During his Nov. 30 guilty plea hearing, Spronk admitted he assisted others in making a false statement to First National Bank in Garretson, S.D., to influence the bank into making a $400,000 loan purportedly to Global Ventures Inc.
Global Ventures, a Pipestone hog operation, served as a nominee to conceal the fact that the loan was actually being used to purchase a $1.1-million problem loan of Kirkwood Broadcasting station in Sioux Falls, S.D., in order to deceive federal bank regulators.
Specific charges
According to charges filed Nov. 26 in U.S. District Court, on or about April 16, 1997, Spronk "knowingly aided and abetted Michael Morgan and David Logan" in making the false statements.
At that time, Spronk, Morgan and Logan each owned nearly a one-third interest in Global Ventures.
Morgan and his family also owned First National Bank in Garretson and First National Bank and Trust in Pipestone.
According to court documents, Spronk admits that on or about April 16, at the request of Morgan, he joined Morgan and others in Morgan's office where Morgan explained he needed a favor from Spronk that involved making a loan to a radio station in Sioux Falls in the name of Global Ventures.
Spronk "understood from the outset that even though the loan would be in the name of Global Ventures Inc., that the loan would not be for the benefit of GVI and the GVI would not be incurring any additional debt or financial exposure from the loan."
Spronk further admits that when he executed the note, he knew GVI was merely a figurehead for the loan, which he believed was being made by First National Bank and Trust, Pipestone.
He told investigators, however, that Morgan and others never told him how the money would be used in connection with the radio station, and he denies knowing the loan was being made to deceive federal regulators.
Terms of the
plea agreement
Under the terms of Friday's plea agreement, Spronk has agreed to provide $250,000 to the city of Pipestone to purchase a new pumper truck and other firefighting equipment; $100,000 in funds to Rock County to purchase and install road signs throughout the county to improve the ability of fire, police and emergency technicians to respond to 911 calls; $50,000 to the Luverne Public School system for the purchase of computers, projectors and repairs; $50,000 to the Pipestone-Jasper School District for its elementary schools' computer labs; and $25,000 each to the Rock County and Pipestone County sheriff's departments.
He also agreed to pay at least a $100,000 fine.
Assistant U.S. Attorney Hank Shea is prosecuting the case. When asked about the unique terms of the plea agreement, he said, "Justice can sometimes be served in more than one way."
He said the terms of the agreement would be appropriate, based on the crime. "Punishment is sometimes part of the justice system; so is making amends for one's wrongful conduct," he said Tuesday.
"Gordon Spronk, through his plea, admitted to wrongdoing that was organized by others. He and others profited from that illegal conduct, so the plea agreement provides a way for him to pay back society for his involvement which should benefit the residents of Rock County and Pipestone County."
Spronk's actual sentence will be determined by Judge Michael Davis based on federal sentencing guidelines. The maximum potential penalty is 30 years in prison and/or a $1 million fine.
Based on his agreement to fully comply with all provisions of the plea agreement, the United States will recommend the court sentence him to less than six months in prison.
Ongoing investigation
Spronk joins a growing list of local defendants to appear in United States District Court.
Rock County feedlot officer John Burgers, Hills, was indicted by a federal grand jury Thursday, Sept. 20, on charges that he accepted money from the Pipestone hog operation Global Ventures Inc. to overlook mismanagement of potentially hazardous waste.
Global Ventures was also charged at that time with two counts of offering a bribe to an agent of an organization receiving federal funds.
On Nov. 1, retired Pipestone construction company owner William A. Winter pleaded guilty in U.S. District Court to lying to a federal agent.
He admitted in court that he gave money to a former Pipestone City Administrator for the purpose of receiving preferential treatment on city contracts. He also admitted to intentionally lying about it to an FBI agent who was investigating alleged bribes in Pipestone and Rock counties.
The cases all stem from an FBI investigation of financial arrangements and the hog industry in the Pipestone area for several years.
Anyone with information concerning the possible solicitation or receipt of bribes or kickbacks in Rock or Pipestone counties can call FBI Special Agent Michael Dudley, (507) 387-2460.
"If any of this information strikes a responsive chord in anyone's memory, we encourage them to call," Shea said.
After the publishing of the number following Burgers' indictment, Shea said, "A number of people stepped forward with information that was helpful in the ongoing investigation," he said. "It's been a substantial assistance."